September 13, 2011
“Advice is what we ask for when we already know the answer but wish we didn’t.”
-Erica Jong, How to Save Your Own Life, 1977
How Does Engendering Creativity Compare to Vocationally Based Methodologies When Encouraging Enterprising Behaviour Amo
This paper was written by John D. Byrne, Thomas M. Cooney, Osa Godwin Osaghae and Brian Stratford, from Dublin Institute of Technology. This paper was presented at the 2011 ICSB Annual Conference in Sweden.
The Psychology of Entrepreneurship
Entrepreneurship training and education has been the focus of increased attention in recent times as a variety of interested parties seek to stimulate economies both locally and globally through increased entrepreneurial activity. The attendant risk for such interest lies in the extent to which people see entrepreneurship as a „panacea? in recessionary times, offering a widely accessible vehicle for those who are unemployed to return to the workforce en masse. This paper purposely investigates entrepreneurship trainers and the degree to which they are predisposed to take into consideration certain pre-determined factors (which recent studies have suggested are most likely to lead to sustained entrepreneurial success) when assessing the personal traits and vocational interests of their trainees. The paper focuses on establishing the awareness levels of those involved in entrepreneurship training when considering the psychological make-up of those trainees who are most likely to be the source of sustainable potential entrepreneurship, particularly in the case of the unemployed and early schoolleavers. Specifically, the paper examines the extent to which didactic approaches designed to encourage creativity in trainees are still preferred, despite recent research findings, which suggest that alternative approaches might generate stronger results. The paper suggests that while creativity is arguably present in all of us (to a greater or lesser extent), the potential for successful entrepreneurship is not, with empirical studies, signifying that it exists only in a small minority of individuals. On an encouraging note, however, the paper points to the comparative stability in the ranks of those persevering in entrepreneurial activity, despite their minority status and below-average expectations in respect of financial return, with the authors positing that this is indicative of persistent psychological factors stemming from enduring interests and personality traits. This paper asks whether introducing measures to identify, develop and encourage personal skills (for instance in calculated risk-taking and failure-avoidance) in trainees with high entrepreneurial potential, which might yield higher dividends, should be viewed as a priority for those involved in entrepreneurship training.
TIP OF THE WEEK
Even during tougher financial times, banks are still lending money to creditworthy small businesses. Bank of America announced plans to increase small business lending by $4 billion in 2010, but actually increased it by $12.6 billion. While the ideas of meeting with a banker can be intimidating to some people, here are some tips to access those needed dollars:
- Don’t ask anyone to do something you aren’t willing to do yourself. You have to put your own assets on the line to get a business loan.
- Start talking with your banker before you are in dire need. Bankers are naturally conservative because they have to protect their depositors’ money.
- Remember cash is king, and examine and be prepared to defend every purchase requiring additional debt. Be prepared to address how the cash flow from the asset will be used to pay off the debt required to purchase the asset.
-Ask about the SBA-guaranteed loan programs. There may be new loans available or guidelines that have been relaxed that now make you eligible.
-Don’t surprise your banker. Don’t go in on Thursday to say that you can’t make your payroll on Friday.
-Have routine meetings with your banker to keep her up to date on how your business is progressing.
-Tell your banker in person when your business is having trouble immediately, and explain how you intend to overcome the problem.
-Review all insurance policies and make sure the coverage you have is adequate. In the same light, avoid insurance you do not need.
-Take time to educate your banker about your business and industry. The better your banker understands your business, the better he can help you.
-Be timely with your payments ad any financial information the bank may request from you.
-Give your banker all your business – both your personal accounts and your firm’s deposits.
-Keep a positive attitude. A banker asking for more documentation isn’t necessarily looking for a reason to turn your loan down. Rather, she needs more information. Bankers look for reasons to say “yes.”
ICSB Affiliate from Argentina will be holding The 15th Annual Red Pymes Conference during September 28-30, 2011 at the National Technologial University, in Concepcion del Uruguay. For more information, click Here.
International Council for Small Business will be holding its International World Conference during June 10-13, 2012 in Wellington, New Zealand. For more information, click Here.
The Association for Small Business and Entrepreneurship will be holding its 37th Annual ASBE Fall Conference during Novemeber 9-11, 2011 in Savannah, GA. For more information, click Here.
The Collegiate Entrepreneurs’ Organization will be holding its CEO Annual National Conference during October 27-29, 2011 in Fort Worth, TX. For more information, click Here.
USASBE News Update
The Family Business Special Interest Group is proud to announce the establishment of a $500 cash award for the USASBE Best Paper in Family Business Award, which will be presented at each of the next three USASBE annual meetings. This award, sponsored by the University of Wyoming and Northeastern University, will honor the best USASBE conference paper that deals with topics related to family firms. We encourage everyone to consider submitting research papers relevant to issues involving family business to the upcoming USASBE conference in New Orleans. For more information, click Here.
Mark your calenders! The 2012 USASBE Annual Conference will be held in New Orleans January 12-15, 2012. Submissions will be accepted online from June 13, 2011 to August 26, 2011. If you have any questions, please contact the Program Chair, Mindy Walls, at firstname.lastname@example.org. For more information, click Here.
Small Business Institute
The Small Business Institute will be holding its 2012 Annual Conference during February 16, 2012 in San Antonio, TX. For more information, click Here.
Allied Academies Fall International Conference
Allied Academies will be holding a Fall International Conference in Las Vegas, NV during October 12-14, 2011.For more information, click Here.
Canadian Council for Small Business and Entrepreneurship will be holding its Annual Conference in Windsor, Ontario during September 29 – October 1, 2011. Deadlines for Submissions is June 1, 2011.For more information, click Here.
CALLS FOR PAPERS
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